Sumitomo enters India’s renewable energy market with $711.54m investment

It eyes developing and supplying clean energy through PPAs.

Japan’s Sumitomo Corporation has set its foot on India’s renewable energy sector through its joint venture with AMPIN Energy Transition Private Limited that will invest $711.54m (JPY100b) to develop clean power sources in the South Asian country.

The parties have established holding company AMPIN C&I Power Private Limited, wherein Sumitomo holds 49%, and AMPIN 51%.

Through the new company, the parties will also supply renewable energy, primarily solar and wind, to corporate clients through power purchase agreements (PPA). They aim to supply one gigawatt of power to industry within the next few years, with plans for future expansion.

Seiji Kitajima, general manager, Energy Innovation Initiative Strategic Business Unit of Sumitomo Corporation, said this project is one of the largest corporate PPA projects undertaken by a Japanese company in India.

“By combining our expertise and resources, we aim to co-develop and co-own renewable energy projects that will provide substantial long-term returns whilst significantly contributing to the nation’s energy transition goals,” said Pinaki Bhattacharya, founder, MD, and CEO of AMPIN Energy Transition.

India aims for net-zero emissions by 2070, targeting 50% renewable power by 2030. Its growing corporate PPA market, which is now the world's third-largest after the US and Spain, is supported by regulatory reforms such as open access to transmission and distribution networks for operators, and improvements in the business environment.

$1 = JPY140.54